Economist Art Laffer owes Peter Schiff a penny after losing a 2006 bet.
Now Peter is ready to go double or nothing.
Peter won the penny on a bet he made with Laffer on Larry Kudlow’s TV show back in 2006. Peter said the economy as going to crash. Laffer said the economy was doing great and there was nothing to worry about.
As we know, Peter was right.
Right before the Federal Reserve raised interest rates for the last time in December 2018, Peter Schiff predicted the next move would be a rate cut. At the time, Fox Business anchor Liz Claman promised she would bring Peter back on if he was right.
He was. And she did.
The Fed cut rates for the first time in over a decade last week. Peter appeared on The Claman Countdown to talk about the cut, reiterating that it will not stop the coming recession. He also offered some advice to investors.
In a podcast last week, Peter Schiff said we have all the elements of a gold bull market. This week, he appeared on Kitco News and talked with Daniela Carbone about what’s going on with gold. Peter said he thinks we’re at the beginning of a breakout from the consolidation we’ve seen in the market since it peaked at $1,900 back in 2011. He also said he thinks gold will push well-above $5,000.
As he has been doing for months, Peter honed in on Federal Reserve monetary policy as the big driver.
Gold has risen to six-year highs in recent weeks as the Federal Reserve has pivoted back toward an easy-money monetary policy. Markets widely anticipate a Federal Reserve interest rate cut this week and the economy appears to be slowing.
Peter Schiff recently appeared on RT Boom Bust to explain why he believes this is the beginning of a much bigger long-term rise in the price of gold. And it’s not just because the Fed is cutting rates.
Last week, we reported that Poland added 100 tons of gold to its reserves through the first half of the year and that it plans to move at least half of that hoard out of London to National Bank of Poland vaults in Warsaw. Although officials haven’t said so publicly, Poland’s move to repatriate part of its gold holdings indicates that there is perceived risk in keeping the metal stored in London, exacerbated by England’s confiscation of Venezuelan gold.
Peter Schiff recently appeared on RT with Rick Sanchez to talk about the subject. And he said the US is an even more dangerous place for other countries to store gold than Great Britain.
Jerome Powell took center stage last week and the Federal Reserve chair didn’t do anything to dampen expectations of a rate cut. His comments sent both stocks and gold higher.
Peter Schiff recently appeared on RT Boom Bust with University of Amherst economics professor Richard Wolff to talk about the Fed and its impact on the markets. Pete said no matter what the Fed does, a recession is coming.
The question often comes up: with all of the loosey-goosey monetary policy, historically low interest rates, liquidity injections and quantitative easing, why haven’t we seen huge bouts of price inflation?
Some people then take the next step and suggest that since we haven’t had huge bouts of inflation, this kind of loosey-goosey monetary policy should become the standard. With unlimited money at our fingertips, we can all have the proverbial free lunch.
Wolf Richter says there is a fatal flaw in this plan. Despite what the pundits tell you there have been huge bouts of inflation — “Pernicious, dangerous inflation.”
The price of gold is up over 9.5% since the beginning of the year. One strategist who appeared on CNBC yesterday says he sees it going even higher – as high as $2,000 by the end of the year.
David Roche heads London-based Independent Strategy. During an interview on CNBC’s Squawk Box, he said he sees bad things to come in the stock markets but gold will shine.
I actually believe financial markets are now poised to crumble like a sand pile.”
SchiffGold’s own Mike Maharrey recently appeared on RT to talk about the potential consequences of US policies that effectively weaponize the dollar.
We’ve been reporting extensively on efforts by Russia, China and other countries to minimize their exposure to the dollar. Russia and China recently agreed to increase trade using their own national currencies. This is another in a series of moves globally to reduce dependence on the US dollar. Currently, about 10% of trade between Russia and China is conducted in yuan and rubbles. Under the new deal, it will increase to about 50%.
Although it has given back some of its gains with news of a ceasefire and a resumption of talks in the trade war between the US and China, gold has surged over the last couple of weeks driven by global instability and turmoil – not only from the ongoing trade conflict, but also with the saber-rattling between the US and Iran. Gold broke through the $1,400 mark and hit six-year highs last week.
Peter Schiff appeared on RT’s Boom Bust to talk about it along with the recent bitcoin rally.